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<form name="para" action="/market_risk/simulate.jsp" method="post">
  <table style="text-align: left; width: 100%;" border="1" cellpadding="2" cellspacing="2">
    <tbody>
      <tr>
        <td colspan="5" rowspan="1" style="vertical-align: top; text-align: center;">
        <h1><span style="font-weight: bold;">Credit Risk Simulation
Model</span></h1>
        </td>
        <td style="vertical-align: top;"><img style="width: 132px; height: 132px;" alt="Risk" src="bankrisk_h.png"><br>
        </td>
      </tr>
      <tr>
        <td colspan="6" rowspan="1" style="vertical-align: top;">
        <h3>Simulation Configuration <br>
        </h3>
        </td>
      </tr>
      <tr>
        <td style="vertical-align: top; font-weight: bold;"><br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
      </tr>
      <tr>
        <td style="vertical-align: top; font-weight: bold;" onmouseover="showhint(this, 'Step 1, here we can set up basic parameters.')">Step
1:
Basic Setup<br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
        <td style="vertical-align: top; font-weight: bold;" onmouseover="showhint(this, 'Step 2, set up some exposures of FX, interest rates and stock market')">Step
2:
Initial Setting for Risk Scenario<br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
        <td style="vertical-align: top; font-weight: bold;" onmouseover="showhint(this, 'Step 3, set up parameters of scenarios, data sources and UI')">Step
3:
Simulation Configuration<br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
      </tr>
      <tr>
        <td style="vertical-align: top; font-weight: bold;" onmouseover="showhint(this, 'Target bank')">Bank<br>
        </td>
        <td style="vertical-align: top;">
        <select name="Bank">
        <option value="boc">Bank of China</option>
        <option value="bea">Bank of East Asia</option>
        <option value="ccb">China Construction Bank</option>
        </select>
        </td>
        <td style="vertical-align: top; font-weight: bold;" onmouseover="showhint(this, 'FX exposures')">Foreign
Exchange Exposure(HKD) </td>
        <td style="vertical-align: top;">&nbsp;<input name="fxexp" value="0"><br>
        </td>
        <td style="vertical-align: top; font-weight: bold;" onmouseover="showhint(this, 'Interbank payment price methods')">Interbank
Payment Price
Methods</td>
        <td style="vertical-align: top;">
        <select name="ipprice">
        <option value="mc">Monte Carlo</option>
        <option value="capm">CAPM</option>
        <option></option>
        </select>
        </td>
      </tr>
      <tr>
        <td style="vertical-align: top; font-weight: bold;" onmouseover="showhint(this, 'Target country or area')">Country/
Area<br>
        </td>
        <td style="vertical-align: top;">
        <select name="country">
        <option value="hk">Hong Kong</option>
        </select>
        </td>
        <td style="vertical-align: top; font-weight: bold;" onmouseover="showhint(this, 'Interest rate exposures')">Interest
Rate Exposure(HKD) </td>
        <td style="vertical-align: top;"><input name="irexp" value="0"><br>
        </td>
        <td style="vertical-align: top; font-weight: bold;" onmouseover="showhint(this, 'number of banks')">Number
of
Banks<br>
        </td>
        <td style="vertical-align: top;"><input name="numofbank" value="3"><br>
        </td>
      </tr>
      <tr>
        <td style="vertical-align: top; font-weight: bold;">Capital Reserve<br>
        </td>
        <td style="vertical-align: top;"><input name="capitalreserve" value="0">
        </td>
        <td style="vertical-align: top; font-weight: bold;" onmouseover="showhint(this, 'Stock exposures')">Stock
Exposure(HKD) </td>
        <td style="vertical-align: top;"><input name="stockexp" value="0"><br>
        </td>
        <td style="vertical-align: top; font-weight: bold;" onmouseover="showhint(this, 'Data sources, database or file system')">Data
Source </td>
        <td style="vertical-align: top;">
        <select name="datasource">
        <option>Database</option>
        <option>File System</option>
        <option></option>
        </select>
        </td>
      </tr>
      <tr>
        <td style="vertical-align: top;">&nbsp;<br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
        <td style="vertical-align: top; font-weight: bold;" onmouseover="showhint(this, 'FX exposures')">Foreign
Currency (%): <br>
USD/EUR/JPY/GBP/<br>
CNY/AUD/NZD/CAD</td>
        <td style="vertical-align: top;"><input name="fxusd" id="fxusd" size="5" value="12.5">%<input name="fxeur" id="fxeur" size="5" value="12.5">%<input name="fxjpy" id="fxjpy" size="5" value="12.5">%<input name="fxgbp" id="fxgbp" size="5" value="12.5">%<input id="fxcny" name="fxcny" size="5" value="12.5">%<input id="fxaud" name="fxaud" size="5" value="12.5">%<input id="fxnzd" name="fxnzd" size="5" value="12.5">%<input id="fxcad" name="fxcad" size="5" value="12.5">%</td>
        <td style="vertical-align: top; font-weight: bold;"><a href="javascript:openwindowupload();" target="_blank"><span style="font-weight: bold;" onmouseover="showhint(this, 'Upload data from local')">Data
Upload</span></a></td>
        <td style="vertical-align: top;"> <br>
        </td>
      </tr>
      <tr>
        <td style="vertical-align: top;">&nbsp;<br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
        <td style="vertical-align: top; font-weight: bold;" onmouseover="showhint(this, 'Interest rates')">Interest
Rates (%): <br>
USD/EUR/JPY/GBP/<br>
CNY/AUD/NZD/CAD<br>
        </td>
        <td style="vertical-align: top;"><input id="irusd" name="irusd" size="5" value="12.5">%<input id="ireur" name="ireur" size="5" value="12.5">%<input id="irjpy" name="irjpy" size="5" value="12.5">%<input id="irgbp" name="irgbp" size="5" value="12.5">%<input id="ircny" name="ircny" size="5" value="12.5">%<input id="iraud" name="iraud" size="5" value="12.5">%<input id="irnzd" name="irnzd" size="5" value="12.5">%<input id="ircad" name="ircad" size="5" value="12.5">%</td>
        <td style="vertical-align: top; font-weight: bold;"><span style="font-weight: bold;" onmouseover="showhint(this, 'Output')">Output</span></td>
        <td style="vertical-align: top;">
        <table style="text-align: left; width: 100%;" border="1" cellpadding="2" cellspacing="2">
          <tbody>
            <tr>
              <td style="vertical-align: top;"><input name="totalsecurities" value="ts" checked="checked" onmouseover="showhint(this, 'whether display total securities.')" type="checkbox">Total
Securities<br>
              <input name="cpv" checked="checked" onmouseover="showhint(this, 'whether display clearing payment value')" type="checkbox">Clearing
Payment Value</td>
            </tr>
          </tbody>
        </table>
        </td>
      </tr>
      <tr>
        <td style="vertical-align: top;">&nbsp;<br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
        <td style="vertical-align: top; font-weight: bold;" onmouseover="showhint(this, 'Stock exposures')">Stock
(%):<br>
S&amp;P/HSI/Shanghai/Nikkie 225 Index/FTSE Index/MSCI Emerging Market
Index<br>
        </td>
        <td style="vertical-align: top;"><input id="stocksp" name="stocksp" size="5" value="16.67">%<input id="stockhsi" name="stockhsi" size="5" value="16.67">%<input id="stocksh" name="stocksh" size="5" value="16.67">%<input id="stocknikkie" name="stocknikkie" size="5" value="16.67">%<input id="stockftse" name="stockftse" size="5" value="16.67">%<input id="stockmsci" name="stockmsci" size="5" value="16.67">%</td>
        <td style="vertical-align: top;"><a href="javascript:openwindowupload();" target="_blank"><span style="font-weight: bold;"></span></a><br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
      </tr>
      <tr>
        <td style="vertical-align: top;">&nbsp;<br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
        <td style="vertical-align: top; font-weight: bold;"><br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
        <td style="vertical-align: top;"><span style="font-weight: bold;"><br>
        </span></td>
        <td style="vertical-align: top;"><br>
        </td>
      </tr>
      <tr>
        <td style="vertical-align: top;"><br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
        <td style="vertical-align: top;"> <button name="reset" type="reset">Reset</button> </td>
        <td style="vertical-align: top;"> <button value="Submit" type="submit" name="submit">Submit</button> <br>
        </td>
        <td style="vertical-align: top;"><input name="simutype" value="1" type="hidden"><br>
        </td>
        <td style="vertical-align: top;"><br>
        </td>
      </tr>
    </tbody>
  </table>
</form>

<br>

<span style="font-weight: bold;"></span><span style="font-weight: bold;"></span><a href="usersmanual.pdf">User Manual Download</a><big><span style="font-weight: bold;"><br>
</span></big>This simulation funciton aims to simulate credit risk (An
investor's risk of loss arising from a borrower who does not make
payments as promised. Such an event is called a default. Another term
for credit risk is default risk.). In this scenario, the main risk
factor is interbank loans.<span style="font-weight: bold;"></span><br>

<big><span style="font-weight: bold;">Step 1: </span>Basic
configuration on target bank and country/area.In this section, the user
can set up basic parameters of the environment, such as target bank and
country/area.<span style="font-weight: bold;"><br>
Bank</span>: The target bank in this simulation.<br>
<span style="font-weight: bold;">Country/Area</span>: In which
country/area the target bank will run in. Different country/area means </big><big>different<span style="font-weight: bold;"> </span></big><big>macroeconomic
environment<span style="font-weight: bold;">.<br>
Step 2: </span>Exposures of different risk factors.<span style="font-weight: bold;"><br>
Foreign Exchange Exposure</span>: It's the amount of all foreign
exchange exposures held by the target bank in the following 8
currencies.<br>
<span style="font-weight: bold;">Interest Rate Exposure</span>: It's
the amount of all bonds in the following 8 currencies and 7 different
maturities.<br>
<span style="font-weight: bold;">Stock Exposure</span>: It is the
amount of all stocks in different stock markets.<br>
<span style="font-weight: bold;">Foreign Currency (%)</span>: The
proportion of different currencies held by the target bank.<br>
<span style="font-weight: bold;">Interest Rates (%)</span>:</big><big>
The proportion of different bonds in different currencies held by the
target bank.</big><br>

<big><span style="font-weight: bold;">Stock (%)</span>: </big><big>The
proportion of stocks in different stock markets held by the target bank.</big><br>

<big><span style="font-weight: bold;">Stock Price Prediction Methods</span>:<span style="font-weight: bold;"> </span>It is the method used to price the
stocks, indexes in the following trading day. The user can choose from
CAPM and Monte Carlo.<span style="font-weight: bold;"><br>
Step 3: </span>Parameters of this scenario (stock markets shock rate
and
frequency), data sources and UI.<br>
<span style="font-weight: bold;">Interbank Payment Price Methods</span>:
There are interbank payments betweet banks. In this simulation the
interbank payments data are generated by pricing methods, such as CAPM
and Monte Carlo. <br>
<span style="font-weight: bold;">Data Source</span>: This simulation
depends on the environment economic data such as foreign exchange
rates, interest rates and stock markets indexes. Those data can be
loaded by databases or file system.<br>
<span style="font-weight: bold;">Data Upload</span>: If the user wants
to upload the data from file system, this link will open a new windows
for uploading.<br>
<span style="font-weight: bold;">Output</span></big>: <big>In this
secions, the user can specify which risk indictor will show in the
simulation user interface.</big><br>

<br>

<br>

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